Lessons of eco-innovation policy for smart specialisationkemp.unu-merit.nl/presentation Rene Kemp...
Transcript of Lessons of eco-innovation policy for smart specialisationkemp.unu-merit.nl/presentation Rene Kemp...
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Lessons of eco-innovation policy for smart specialisation
René KempProfessor of Innovation and Sustainable DevelopmentUNU-MERIT and ICIS
Seminar at JRC in Sevilla, 24 Sept, 2019
About me
• I am professor of Innovation and Sustainable Developmentat Maastricht University and professorial fellow at UNU-MERIT
• I am well-known for my work on policies for eco-innovation and transition management
Relevant topics I have worked on– Environmental policy and technical change– Sustainability transitions– Green industrial policy – Innovation Policy– Organic PV– Waste transition– Sustainable mobility– Urban Labs– Social innovation – Eco-innovation measurement
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My personal transition
• From econometrics to a multidisciplinary researcher
• With a special interest in methods, theory and policy
• I am a critical methodological pluralist interested in combinging different methods, theories and data
• A quote I very much agree with:
– “One has to make up his mind whether he wants simple answers to his questions – or useful ones… ….you cannot have both.” J.A. Schumpeter (1930)
My policy experiences
• I advised the EU on RTD policy for climate change and on eco-innovation on many occasions.
• For the Environment Council (= meeting of EU Environment Ministers) in Maastricht in 2004, I wrote a strategy note about eco-innovation, which fed into the council’s conclusions.
• Together with Jan Rotmans, I developed the model of Transition Management, which, following many discussions with policy makers, was used by the Dutch national government as a basis for its innovation policy for sustainability energy.
• In 2013 and 2014 I was member of the Limburg Chamber of Commerce platform“Energy, Sustainability and Innovation”.
• I am member of Afvalsamenwerking Limburg (ASL)
• With Babette Nevers I authored a chapter/article on green industrial policy
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Overview of talk
• Innovation and evolution• Inherent difficulties for innovation policy• Point of intervention for policy• Multiple value creation as something for Smart
specialization (making good use of nature)• Low risk and high risk policies for Smart
specialization• Transition management principles
Innovation & evolution
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Link #1
• Innovation requires resources for its production,
distribution, use and post-consumption activities Example resources are energy, materials, knowledge, finance
• And involves lots of dependencies and shaping factors
( eco-system)
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Variation and selection (link #2)
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Speciation
The emergence of a dominant
(technological) design
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Examples of dominant
designs / regimes
Technology shifts in home entertainment from a TIS life cycle perspective
Technology shifts in home entertainment
from a TIS life cycle perspective
Source: Markard (2019 The life cycle of technological innovation systems, in TFSC
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Different interaction effects (link #3)
Positive (+) and negative (-) interaction effects
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Inspired by nature (link #4)Cradle to cradle
bio-mimicking
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Source: Bocken et al. 2016)
The adjacent possible
(link #5)
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The role for policy is context and
phase-dependent and
requires capabilities for learning and
defining good policies
Inherent difficulties in innovation policy
• Innovation is surrounded by uncertainty, creating a problem for
effective policies
• Contradicting requirements of innovation: support and selection
• Danger of regulatory capture by innovation actors (scientists,
companies, …)
• A world full of policies (with different rationales) that interact
with each other (competition policy, environmental policies,
innovation policies, …)
• Unhelpful ideologies (government cannot pick winners, …
• …
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Points of intervention for innovation policy
• The national system for innovation (education, finance,
knowledge vouchers for SMEs, …)
• Sectoral systems for innovations
• Specific technological innovation systems (e.g., wind
power, bioenergy, …)
• Sustainability transitions through STIR and
solution design
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The quadruple helix
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The Triple Helix+ users model
Source: Arnkil, R., Järvensivu V.,
et al. (2010). Exploring Quadruple
Helix. Outlining user-oriented
innovation models.
Different types of users
Source: Arnkil, R., Järvensivu V.,
et al. (2010). Exploring Quadruple
Helix. Outlining user-oriented
innovation models.
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Quintuple helix: 4H + intermediaries
Intermediaries / intermediation
• Intermediaries fulfill critical functions wrt mediating, informing,
connecting, coordinating
• The intermediary can be an individual actor, an organisation, such as
a market research agency or the Industrial Biotechnology Innovation
Centre (IBioIC) in Scotland, a network, as in van Lente et al's (2003)
example of the Californian Fuel Cell Partnership, and a programme
(Moss, 2009)
• In a strategic action field there may be multiple intermediaries and
forms of intermediation
• Next to connecting organisations, they may help them find new roles
and strategies (boundary change)
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Concrete examples of innovations
with sustainability benefits(candidates for a smart specialisation
approach)
Multiple value creation
as an innovation goal and outcome
• Competing on costs is a losing game for European companies (as illustrated
by the example of Zara sourcing its apparels from Morocco and Turkey)
• Fashion and new functionalities help Europeans to protect themselves
against low-cost products
• Waste could be used as an input (especially if landfilling is forbidden and
discouraged)
• Making use of nature: Connecting and combining seemingly disparate
environmental problems with open-source scientific solutions based upon
physical processes common in the natural world, to create solutions that are
both environmentally beneficial and which have financial and wider social
benefits (Gunther Pauli)
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Source: Presentation Jacques Kimman at ICIS day
Source: Presentation Jacques Kimman at ICIS day
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Source: Presentation Jacques Kimman at ICIS day
Combining different functionalities may
encounter problems of financing
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Source: Jurgen van den Heijden, AT Osborne
Source: Jurgen van den Heijden, AT Osborne
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Source: Jurgen van den Heijden, AT Osborne
Source: Jurgen van den Heijden, AT Osborne
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Source: Jurgen van den Heijden, AT Osborne
Source: Jurgen van den Heijden, AT Osborne
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Source: Jurgen van den Heijden, AT Osborne
Making use of nature
Regeneration via innovation
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PaludiculturePeat restoration and preservation
for ecological landscape reasons
and climate protection benefits (drained peat responsible for 5% of
human induced GHG emissions)
financed by product revenues and the
selling of carbon credits
Making use of the water cleaning aspects of mangrove offering a habitat for many types of fish and plants
Instead of feeding shrimps with shrimp waste and using chemicals and anti-biotics (as a non-sustainable and less resilient approach)
Source: Gunther Pauli
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Seaweed for food, energy, clothes, storing carbon and for keeping oceans alkaline (necessary for corals)
It does not require fresh water (which is getting more and more scarce in many areas)
Circular fashion
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Source: Circular FashionWorkshop ‘Identifying High-Value Solutions
Source: Circular FashionWorkshop ‘Identifying High-Value Solutions
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A collaborative project of SABIC in theNetherlands and Plastic Energy (UK) to produce ‘Tacoil’ a polymer (based on a patented process)
Recycling of mixed plastics of low quality
Asia Will No Longer Tolerate Being a Plastic
Waste Dump
China set the trend of refusing foreign plastic waste.
Now other Asian countries are following suit.
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Successful cases of Circular
Economy policy
Fly ash in cement
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Success factors
• A special intermediary (Vliegasunie) was created for the use of fly ash in
cement
• Co-determinants:
– The use of fly ash is related to the oil crisis which prompted power producers to invest in
coal-fired plants
– The Netherland’s specific geographical conditions with open water landscapes and moist
and salty environments, require cements with high durability, and especially better
resistance to aggressive substances (Global Cement, 2012). It is indeed mainly in marine
environments where the BFS cement has demonstrated its superior characteristics as
compared to OPC, within long life projects such as roads, bridges and tunnels, as well as in
buildings near the sea.
– The CEM III standard helping blast furnace slag to diffuse
Sewage sludge as a fuel
• The burning of sewage sludge in cement
kilns (as a minor innovation) is the direct
result of a collaboration between the water
sector and the ENCI (which was
motivated by the ban on sewage sluge as a
fertilizer)
• After dewatering and drying the sludge at
municipal waste-water treatment sites, the
organic material is being grinded in a
special plant of BioMIll, a joint venture of
the Limburg association of water
management boards (Zuiveringsschap
Limburg) and ENCI
• Presently alternative types of uses are
investigated
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Local energy policy
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Low risk potential success cases
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Radical energy renovation in Kaalheid (NL)
Conditions for success
• Those involving locally available knowledge and resources (including waste and land)
• Actors who are willing to collaborate thanks to attractive value propositions for all relevant actors
• A good functioning innovation network product and price improvements
• No competition from cheap imports
• First-mover advantages
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Higher risk cases
Organic solar cells (flexible polymers)
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• Relative ease of imitation
• Stronger networks of innovations elsewhere
• Open trade
• Government support is needed for a long time
• Poor capacities for system building and institutional change
• Continuous progress in incumbent technologies (for example silicon-
based solar cells)
• Poor anticipation of external developments such as sustainability
demands and good behaviour pressures
Factors contributing to higher risks of failure
System building activities to create
proficient backbones
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Source: Planko et al. (2019) Strategic collective system building to commercialize sustainability innovations, in Journal of cleaner Production
Strategic collective system building to
commercialize sustainability innovations
Strategy framework for system-building
activities
Source: Planko et al. (2019) Strategic collective system building to commercialize sustainability innovations, in Journal of cleaner Production
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Fostering institutional change and
programmatic adaptation
Governance
Directional guidance
Arrangements
Transactions
Performance monitoring
Governance
Directional guidance
Arrangements
Transactions
Performance monitoring
Focus on transactions and performance monitoring
Focus on whole backbone, transactions as logical
consequence
spotlight
spotlight
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• The elements of the backbone should be dynamically monitored and
evaluated wrt:
– Proficiency level
– Coherence
• In an actor specific way (to allocate responsibilities, adapt policies
and foster institutional change)
• Role for benchmarking of inputs, activities, outputs, processes and
outcomes across regions aids learning (about transition processes to a
circular economy, renewables based energy system, sustainable agriculture,
…)
• Green industrial policies (based on smart specialization) should be updated
in the light of international competition and policy evaluation (policy
adaptation)
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Dani Rodrik on green industrial policy
• The prime task for policy makers is to learn where the constraints and
opportunities lie and respond appropriately to these.
• Regarding the interaction with business, he favours a model of “embedded
autonomy” consisting of ‘strategic collaboration and coordination between the private
sector and the government with the aim of learning where the most significant bottlenecks
are and how best to pursue the opportunities that this interaction reveals’ (2014, p. 485).
• To prevent regulatory capture & inefficiencies, Rodrik advocates
“discipline” in the use of policy support.
• For safeguarding the public interest and obtaining buy in, policy agencies
should be publicly accountable as to their failures and successes.
“Accountability not only keeps public agencies honest it also helps
legitimize their action” (Rodrik, 2014, p. 488).
Transition management as
guided evolution by exploiting the
adjacent possible in a forward-
looking, adaptive way
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• Forward-looking thinking (visions of alternative systems and
new business)
• Learning and experimentation by actors interested in
alternative systems
• Putting pressures on non-sustainable regimes (easier to do in case
of well-developed alternatives)
• Adapting policies and portfolios that receive support
• Government as facilitator (not a director or just a funder)
• Institutional support for transition endeavours
Key elements of TM
Readings about TM, green industrial policy
and solution design
• Rotmans, J., R. Kemp, and M. van Asselt, 2001: More evolution than revolution: Transition
management in public policy. Foresight, 3(1), 15-31
• Meadowcroft, J. (2005). Environmental political economy, technological transitions and the
state. New Political Economy, 10(4), 479-498
• Kemp, R., D. Loorbach and J. Rotmans (2007) Assessing the Dutch energy transition policy:
how does it deal with dilemmas of managing transitions? Journal of Environmental Policy and
Planning 9(3-4): 315–331.
• Kemp, R., 2010: The Dutch energy transition approach. International Economics and Economic
Policy, 7(2-3), 291-316
• Kemp, R., Never, B. (2016) Green transition, industrial policy, and economic development,
Oxford Review of Economic Policy, 33(1): 66–84. https://doi.org/10.1093/oxrep/grw037
• Ramani, S., Kemp, R. (2019) Solution design for Green Development and SDGs,
contribution for the book New Research Directions in Environmental Economics edited by Matthias
Ruth (to be published by Edward Elgar).